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Topic : Post Budget 2010 impact
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Created by : Sudeep Tarafdar, Senior Consultant, IBM  | 02 27 2010 09:41:58 +0000
Industry : Oil & GasFunctional Area : India(Markets)
Activity:  625 views;  last activity : 07 06 2010 20:18:09 +0000


If you didn't fill up your tank before midnight, you will now have to pay more for both petrol and diesel.One thing announced in the Budget 2010 that has the Opposition parties up in arms and has upset the aam admi is the fuel price hike.Petrol and diesel prices will go up by Rs 2.67 a litre and Rs 2.58 per litre, respectively, after Finance Minister Pranab Mukherjee  presented Union Budget & raised customs and excise duties on the two.

Customs duty on petrol and diesel were hiked to 7.5 per cent from 2.5 per cent while excise duty was raised by Re one a litre to Rs 14.35 and Rs 4.60 per litre on non-branded (normal) petrol and diesel respectively.

So, do you think the govt. should take back its decision?

 
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We have to blame ourselves for increasing prices of commodities and the fuel prices and not the Government. Let us examine our own habits. What is the contribution of Am Admi to help reduce and stabilise commodity Prices including Fuel prices? It is only negetaive contribution.

We dont want to reduce population by limiting one child per joint family and thus reduce demand for commodities. We dont want to stop unnecessary travells and reduce fuel requirement. We dont want to reduce use of own private vehicles and instead use public transport. I have not seen other Metros, but just come to Bangalore and see for yourselves. Most Vajra and High tech Busses run empty. From My house to mejestic Bus stand-Railway Station complex, it is just 4 km and if I use my car or use a Bus it takes an hr to reach, if I use a two wheeler it takes 40 minutes to reach, if I use a three wheeler Auto it takes 30 minutes to reach. If I walk (few years ago) it was just an hrs walk or less but now I will reah either haven (Die of an accident) or reah Hell (will be alive with a broken leg or hand because of an accident). Cost of travell is the cheapest in redbus at may be Rs 5, in an Auto it is Rs 35-40, Rs 10 in High tech AC Bus, and I have to spend a liter of fuel if I use my car during peak hour and it is hell driving at peak hour. Still no one wants to use pubic transport because everyone has a car now and they want to show that they have car. Then Why reduce fuel price.

My Area is very popular as Kalyana Nagar, because all that SSI Industries that once existed in this area were shifted because of residential growth in the vicinity and the Industria sheds have been now rebuilt to convert them in to Kalyana Mantaps (Marriage Halls) each one between 500 to 1000pks. So during Marriage season there will be at least 150000 additional vehicles plying in the 3-4 Roads connecting the rest of the city to this area. People have all the money to spend lavishly on such marriages, birthdays, naming ceremonies, getotgethers, engagement ceremonies and the like. rent for the hall is between Rs 30000 a day to almost Rs 200000 a day and the food charges are like Rs 100 per person to Rs 300 per person. Decoration charges may range from Rs 10000 ro 200000. That means people have enough Money to spend for such things. People also doesnot bother about our representatives spending. Each MLA or an MP gets a fat salary for what they describe serving the people, They also get perdiem which a normal government servant who does the real work doesnot get while on duty tour. They get this for wht they call for Touring various places for supervising the government servant and inspections, attendng what the call meetings in which they sleep or once in a while fight for non issues. Every person MLA or MP gets perks like a minister because every one of them have such ranks in their positions such as chairman or some publlic sector or of some committees. In addition to elected representatives others who helped win elections or who needs to to kept silent from raisning issues or who have money to buy or some times some inteligent people (on rare ocations) who are apointed as advisers to ministers also need to be given positions in the Government. Ministers like experts conduct areal surveys and give figures of damages and estimates for relief work prepared by others whao have not visited these areas as their own. They raise voices to demand that center realse millions of funds for releif work with out any basis.


By K LAXMINARAYANA RAO, Freelancer  03 01 2010 06:25:09 +0000
 
Top Argument
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One side if government is bringing World Bank lanes for developing our country and another side government has to give subsidies in the energy sector, who will repay them? What about the fiscal deficit? When we can fulfill the difference?

Ultimately we have to clear our debts to the World Bank. Of course, our government has to take stringent steps to make our country self sufficient. Even Developed countries are not able to sustain during the recent recession period. They wanted to minimize the outsourcing of IT. Similarly our government has to find out other alternate sources for Oil and Gas in our country such as solar energy, wind energy etc to minimise our imports of Oil and its by products.


By Bangaru Murali Krishna, Sr.Manager - Projects, Indu Projects Limited  02 28 2010 16:48:19 +0000
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"How Many Roads Must A Man Walk Down Before He Admits Hes lost?" this is what happening with energy co's right now in place of concerning about fuel prices we should rather support them by using our knowledge to make alternate energy to come into mainframe industrial culture so that there wont be pressure on the other energy sources also.
By prateek choudhary, PG Diploma student, maya academy of advanced cinematics  | 04 21 2010 13:39:12 +0000
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Hike in fule prices will lead to hike in price of all essential items, it the common man who will be affected

Instead govt should levy extra tax on all luxury items, high end gadgets, and luxry trvel


By Nikhil , Senior Manager, Insurance  | 04 21 2010 11:17:34 +0000
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 Price rise of diesel and petrol is the subject as Re 1-00 rise all over the country may affect all ( remember : target is the common man .. mainly those who are men/women of small means and away from all tax slabs).

Subbject elaborated : No country may prosper by taxing the common man. Price rise of fuel, specially the diesel, will affect this section right now, daily and for years to come. These rise is effected through out the country, villages and cities equally when prices of all commodoties are beyond the reach of common man.

If common man is suffered, the Industry  and Service Industry equally suffers as they are also the consumers of products made by industries. Looting the common man and then distributing some 'relief' some where is a "cunning method" of the FM .. this should be rolled back.

 

 


By ASOKE KUSARI, Domestic Private Banking-Executive/Manager, A large leading PSU Bank - India  | 03 08 2010 14:22:38 +0000
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Yes, this goverment claims the legacy of Mahatma Gandhi according to whom the goverment should always think of poorest the poor. The fuel price policy should be based in two section, one for public use and another for private use. There should be no taxes on fuel consumed for public purposes and meant for public purposes while there should be no relaxation or subsidy on the private user of the fuel. In the present senerio the fule price hike is in real the imposition of taxes on fuel which were earlier withdrawn. Now the question is whether the taxes imposed again on fuel are too necessary? The argument that growth and development used to cause price rise is vague as the presnt fuel price hike (in fact taxes) has nothing to do with the growth and development. The argument that the financial constrain has forced the fule price hike is also false since there is no control over the expenditure of the goverment. The need of the hour is to cut down the expences of the goverment and its functionaries and not to impose the taxes on the poor people to arrange more money for spending more money on expenditure. The fuel price hike which is in fact imposition of taxes, is unnecessary and arbitrary. There should be an authority/governing body which should decide the price of the fuel, the quatum of taxes ought to be imposed and to determind the balanced policy of fuel price considering the public and private user of the fuel. The pprices of food articles are already become sky high. The present hike in fule price will further devide the society more between two sections: have and have not. It is sure have not will cause physical violences in the society and create law and order problems. Hence I suggest that for a better future the present fuel price hike (in fact taxes) should be withdrawn for the time being. Hope the good senses will force the roll back of hike (taxes) in fuel prices.


By Subhash Chand, Private practitioner/Lawyer, lawsagar  | 03 07 2010 21:12:57 +0000
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Yes. Government should roll back fuel prices because in this inflationary scenario this decesion will increase more inflation rate.


By Mayank Trivedi, Cash Officer, ICICI Bank  | 03 05 2010 15:13:25 +0000
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Yes. For the simple reason petrol and Diesel would directly affect the price of other commodities from pin to plane. The most affected person would be the common man. There are number of ways to collect revenue for the government eg. Inheritance Tax, Tax on Mutts (this is the tax haven for block money and is the local Swiss bank for the politicians and business men). Subsidized petrol and diesel is not only filled for tractors,bus and trucks but also for the BMWs and the Benzs.Govt should ensure subsidy only for the poor not for the Ambanis.Because such corporates are already enjoying Tax benefits from SEZ, EOU and other similar means.       


By Nagalingam , Accounts Executive/Accountant, Sanmar Group  | 03 05 2010 00:50:25 +0000
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yes
By l dash, sales, cloud9  | 03 04 2010 13:24:25 +0000
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Samita Sarkar:Aam Aadmi is under tremendous pressure to sustain their lifestyle under steep Prtice Rise & also for inflation. Their lives will turn into hell when prices will spiral due to Fuel price rise. Govt. has to ensure first that earnings of Aam Aadmi rise & then think of fuel price rise.
By Samita Sarkar, BCC cum Advocacy Officer, Manas Bangla  | 03 04 2010 07:16:18 +0000
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The fuel prices have a spiraling effect.When Govt is not able to control the food prices ,they should not think of adding more fuel to the fire.


By pradeep deo, executive, Midas Suzamaan Associates consultants pvt ltd  | 03 04 2010 05:05:10 +0000
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Increase in the fuel cost ultimately gives rise to the price hike of most of the commodities. If international oil price is the reason then  why it is not incorporated on pro-rata basis to give benefit to the common people when price come down. It means the government is overlooking the impact on common man.


By Hridesh Kumar, Management and Administration, Enshrine Health Care Pvt. Ltd.  | 03 04 2010 04:56:04 +0000
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the victim of these increased fuel prices is middle men..a small hike in the fuel prices creates an imbalance in the monthly budget. Increasing pricing of other commodities has already made a mountain.


By Megha Goel, Assistant manager, Axis Bank, Delhi  | 03 03 2010 18:15:25 +0000
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Yes government should roll back fuel price rise. Fuel is the main source for all vehicles and house hold use. Poor people cannot bare these price rise. Government have to take immediate steps for controlling fuel price.


By veenusmuddana , B.Sc student, Priyadarshini Degree & P.G.College  | 03 03 2010 09:45:10 +0000
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Instead of curbing sale of cars 7 to develop water based transport arrangement for cheap transportation of goods we rely trucks diesal based trasport. It will have chain of rise in prices, Policies are defective but sufferers are common man.

Infact we as a nation are still to mature for demoratic system of governance only kachara of the society get tickets and by hook/crook one is selected with 15 to 30 % votes responsible for such decisions. people like murli deora cooks a ministerial beath for such an important ministry / we should not expect any other decision. Even if 90% vote for the best arguement to roll back but those who have already swallowed millions in the election will have to go nothing other than rise. there will be no roll back.even wiith90% saying to do it

we have to think for different political system for the governance. I quote in the past history the nation had its Golden period when Chandra Gupi maury was the rular .we have well doccumented system with prooven results but these raskel so called political pundits will not allow it to take shape as all such will have to be shelved.


By V S Srivastava IBPS, Director All India Radio/ Doordarshan, retired mediaman  | 03 02 2010 08:26:01 +0000
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YES.

We need to understand the procurement cost, distribution & selling overheads.   Why so many taxes at various national, state & city level are imposed on it?  Why government is eying this sale as revenue source, to earn a handsome income out of it?  If it is for public, why it is been taxed so heavily, which adds up to inflation.

The sale of oils should not be treated as trade.  Rather must be a service without any taxes, but must be subsidized it largely. 

If at all government want to earn from private vehicle owners (car/SUV/bike) levy a special and heavy (may be equivalent to price) one-time tax while purchasing the new one.  This will also limit (to an extent) the new vehicles coming on road.


By Nilesh Jain, Project Manager, A Leading Media/Telecom Co.  | 03 02 2010 07:58:41 +0000
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Agree with Mr Kandadai, 

While there may be no argument that it ought be linked directly to demand supply price variations the timing is not right especially when Government has thoroughly failed to check rampant over profiting by MIDDLEMEN in varied shades and tones.

Secondly the double duty on oil products and excessive taxes by Government as well need correction.


By Ravindra Sharma, Managing Consultant, CHEF-India  | 03 02 2010 06:37:49 +0000
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De-control of fuel prices is long overdue in india. However I am supporting the argument for the roll back of price hike (by way of removal of an exemption) because, I dont think the time is right.

With inflation running at 17.5% (I believe I am correct) (one kg of toor dhal costs anywhere from 60 to 90Rs), I dont think even this marginal increse of 0.4% (as announced by our Honble FM and PM) is justified. When inflation is running essentially uncontrolled, the thing to do is to put in place measures to control and NOT increase them, however small the increase may be.


By RAMESH KANDADAI, Principal Consultant, ARM Consultants  | 03 02 2010 03:43:48 +0000
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I know that this hike will have severe impact on low income people. But I am supporting it because it will at least discourage reckless usage of fossil fuel. It also may inspire in inventing eco friendly energy.


By Ravi , IT PMO, Cricket Communications  | 03 02 2010 01:04:32 +0000
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To me it does not make sense to keep on increasing the fuel prices alone. Instead of this, The Govt should encourage common man to reduce the use of fossil fuel and start using renewable energy. By giving huge sops to the people who uses renewable energy, the tax on fuels should be increased. This will not only reduce the fuel import, but also reduces global warming


By Murali K Balla, Technical Support Manager Atkins  | 03 01 2010 13:48:54 +0000
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we were born free .. on arrival .. we were not aware that  we will have to pay for everything ..

god never invented money ..

so everything should be free .. no fare .. no payments , no taxes , nothing  .... at all ..

all loving :; living and everthing available as freeware and shareware ..


By Ajay Ziz, Dy. Registrar,, University of Jammu  | 03 01 2010 08:19:27 +0000
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Fuel is always at the basis of all prices. Because it adds the value of any product by adding in cost of transportation basically. When the costs of essential consumable products, crops etc. are at rise by other reasons also, the decision taken by Mr. Finance Minister is without understing the problems of the layman. The decision is unreasonable and unwarranted.


By ranjitsinh sureshrao ghatge, Director on Board, Ranjit Ghatge Legal Services Pvt. Ltd.  | 03 01 2010 07:45:19 +0000
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All our wish is yes, But i dont think so the ll taken back their decision. Last time this happens when they increase the price at about 5rs i believe, then opp parties objection and so many makes the govt to reduce  2rs in it. So this time it wont happen i believe.

But let us see how far this political drama going to happen. :)


By Dhesihan S, HR Executive, JUSTINTIME  | 03 01 2010 04:46:25 +0000
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Increase in Price of Diesel has multiplier effect, since the diesel is the fuel used by the transport sector and ultimately result in increase in commodity prices.

However people should reduce unnecessary traveling for piligrimage, marriages and the like. Politicians should stop trvelling to Delhi and stop touring district and villages. That is not required at all. we have government machinery in place every where and an elected representative right from panchayat Member corporates, MLA's and MP's. On the top of it we have a Minister incharge of every District. If the Chief Minister has to visit every village and then only development work will progress or releif work will start, then why should we have MLA's, MP's. Panchayat Members and the Governemtn Machinery? Government is wasting money on MLAs MPs, Ministers. Every one of them want New car costing 40-50 Lakhs or if posible a helicopter. Every time they want their house renovated at public cost. Their salary and perks increased. On the top of it to satisfy the greed of their followers they create posts of advisers in the rank of inisters. No one in this country is interested in reducing unnecessary. People dont want reduce wasteful and unnecessary expenditure and MLAs., MPs and Ministers are our representatives How can they have differant attitude.

So, yes; the Government should roll back fuel prices for the sake of Am Admi. Then in return will the Am Admi change his habits and help reduce fuel requirement by traveling less. If he is not prepared to stop travelling in the name relegion (piligrimage and marriages), He better jolly well pay through his nose for traveling and fuels. Why grumble for increased fuel price. In my openion Government should increase fuel prices by at least Rs 50 per liter and make the llife of unnecessary traveller miserable. If you computerise every thing, it will be easy to identify genuine traveller and give him travel subsidy when required. Similarly Goods transport sector can be given smart cards and a return filing system can be introduced to prevent misuse.


By K LAXMINARAYANA RAO, Freelancer  | 03 01 2010 00:19:23 +0000
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Yes, the Govt should roll back since the cost of prodn / marketing loss is for the company, not for the Govt. Let the Govt not subsidies the Company, &  the company should in turn decide the price. The Revenue should be from Govt resources. The     F M  sould use his Govt Source for filling his deficit.


By NARAYAN SINGH, Corporate Advisory Manager, ANAND & SUDHA RANI - CORPORATE CONSULTANTS  | 02 27 2010 10:02:11 +0000
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Yes,the govt. should roll back the fuel price rise. Big cities are hit hard by the rise in fuel prices. If the govt. is not ready to totally roll back the hike then it should atleast reduce it. Increasing oil price will also have a cascading effect & price of other commodities will also increase.

We are already undergoing a high rate of inflation & gain there is going to be price rise in all the commodities. The govt. should find alternatives to control this cascading effect due to rise in fuel prices.


By Sudeep Tarafdar, Senior Consultant, IBM  | 02 27 2010 09:47:48 +0000
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according to me, it is not easy for government to reduce the prize of fuel bcose of fuel companies loss.........
By kavar chandu C., Application Support Engineer in TATA TELESERVICES LTD. (IT Dept.)  | 04 21 2010 14:04:31 +0000
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No, the govt shouldn't roll back the prices this time. From past 5 yrs the govt. has been planning for the benefit of people even though it has to incur heavy losses. But this time  it has to take some severe steps or else the country & its people would have doomed....


By SANGRAM , Community Manager, TooStep.Com  | 03 06 2010 04:46:14 +0000
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i want to know that at time crude was at trading at such a hing the rat hike is ok but at this time rate hike i personally dosent support the hike


By Davies francis, Analyst, self  | 03 04 2010 14:57:33 +0000
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My Dear Laxminarayana Rao's, First of all i would like to thank you about your expressions.  You are talking about only middle class or upper class community.  The Budget which was announced - is considered only for Upper and Middle Class Income group.  Have you ever thought about who is earning less than a Rs.12,000/- pm.  What benefit they are going to achieve from the budget.  The price of fuel already increased it will badly effect to the lower income group.  Buses, Auto Ricksha, and for all household consumables items will increase.  But for Higher Income Group it will not effect their standard of living.  Govt should have increased the price for all luxuries items. Then only it will benefit. Why cant govt restirct to the MLAs perks and facilities.  Hope you are well aware that each MLA having Luxuries Cars, Guards, Well furnished Homes. Where all these things are coming to them.  Why cant CBI raid for these white colors.  I request you to comment proper - not only for viewing High & Middle Class.  Best Regards.


By venkatesh banda, Finance Manager, Seven Seas Survey Co.  | 03 04 2010 09:20:32 +0000
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no
By Sarathlal , Accounts Manager, Target  | 03 04 2010 08:46:47 +0000
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I dont agree with you. It is the increase in overhead expenditure of the Government is mostly responsible for price raise. Any Government needs money for running the Government. We have today different types of taxes and to administer them we have lots of departments and Ministers. Every Minister thinks he is the top expert because he is sitting at the top and doesnot give any freedom to the executives responsible for implimenting Government Policies. Minister thus spends unneccessarily for his batalions tours and travels. He doesnot travel alone. Even after that most of them doesnot apply their mind or not capable of and dance to the tunes of their chelas. DO you know how much of budget is actully discussed in Parliment? not even 5%. Our representatives are only busy fighting for silly issues. Just study the functioning of peoples representatives in some of the developed countries and the Political systems there you will then know where we are going wrong. Unproductive expenses in Government is mainly responsible for inflation. In addition people have a role to play in aresting price raise. It is the demand supply situation thats is parlty responsible for price fluctuation. Why cannot people stop unecessary travel. Take for example our marriages. Is it not eneough to invite only your close relations and very close friends. and restrict the number of guests to below 100? Whay people should invite 1000's of guests ? This results in unnecessary travel trafic jams and more demand for fuel. MLA's and MP's and the so called celebrities should be role models forst. That doesnot mean that all of them are bad. There are quite a few who are good. but their voice is not heard. I am not going away from the sibject. If you analyse properly go deep searching for the cause of present scenario you ultimately find that population explosion and greed for power and money are the cause of all our problems. We should study and analyse the subject deepley and then come to conclusions. Hope yu will agree with me. Thanks for your coments it is coments like this makes the discussions usefull. Thanks again.


By K LAXMINARAYANA RAO, Freelancer  | 03 04 2010 00:46:10 +0000
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In this present situation govt. should not role back on fuel prices.


By Nagesh Patil, Sales/BD Manager, Hindalco Industries Limited  | 03 01 2010 14:44:01 +0000
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Govt. increased the fuel price to "insulate" the consumers from high international oil prices that the government had then reduced the basic customs duty to 2.5 percent.

Now since the average price of Indian basket of crude oil is around US$70 per barrel, the finance ministry has restored the basic Customs Duty of 5 percent on crude oil and 7.5 percent on petrol and diesel. Also, the Central Excise Duty has been enhanced on petrol and diesel by Re.1 per litre each.

So, there may be no wrong in inceasing the fuel prices, but I agree that it should not affect the public much & the prices should be reasonable.


By Prarthana Devi, Database Architect/Designer, Leading IT Company  | 02 27 2010 09:55:56 +0000
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